Analysis of New Income Tax Slabs(budget 2023) vs Old Slab & Regime of the working group of people in the salary bracket of 10lakh and 1Cr.
As per an article by Financial Express, there are close to 1 crore people in the salary group, even though the number seems small considering the 140 crores Indian population, the total salary of this class forms a huge chunk of which a good amount of money is being paid as Income Tax. Now keeping income tax calculation simple and performing a lumpsum analysis, the income tax being paid for different salary groups compared between old and new slabs are as below. I was able to find that this bracket of people has to pay more with the new tax slab. This is evident through the examples below, and the same applies throughout this salary bracket. The example income tax calculation for a salary of 10LPA Old Tax Slabs : Slab1 ₹0-2.5L: 0% - ₹0 Slab2 ₹2.5-5L: 5% - ₹25,000 Slab3 ₹5-10L: 20% - ₹1,00,000 Slab4 Above ₹10L: 30% -₹0 Standard Deduction : ₹50,000 80C - ₹1,50,000 Total=₹1,25,000-(₹50,000+₹1,50,000)=₹0 New Tax Slabs : Slab1 ₹0-3L: 0% - Rs. 0 Slab2 ₹3-6L: 5% - ₹15,000 Slab3 ₹6-9L: 10...